REPUBLIC OF LITHUANIA                                     
                                                                                
                                 LAW                                            
                                                                                
                   ON CHARITY AND SPONSORSHIP FUNDS                             
                                                                                
     Article 1. Purpose of the Law                                              
      1.  The  Law  shall regulate the establishment, management,               
activities,   reorganisation  and  liquidation  of  charity   and               
sponsorship Funds (hereinafter referred to as the Fund).                        
      2.  The  Law  shall  not apply to credit  institutions  and               
insurance organisations which carry the name of the Fund as  well               
as  to  Funds  which  are  established  under  separate  laws  or               
international  agreements  with other  states  and  international               
organisations and which are governed by the terms and  conditions               
of the agreement.                                                               
                                                                                
     Article 2. The Concept of the Fund                                         
       1.  The  Fund  is  a  non-profit  organisation  without  a               
membership  the  purpose of activities whereof is  dispensing  of               
charity  or  (and) sponsoring science, culture,  education,  art,               
religion,  sports,  health   care, social  care  and  assistance,               
environmental protection and other areas specified in the Law  on               
Charity  and  Sponsorship.  A non-profit  organisation  means  an               
entity  possessing the rights of legal person which has been  set               
up  in  accordance with the procedure established by law and  the               
purpose of activities whereof is not profit seeking.                            
     2. The registered office of the Fund must be in the Republic               
of Lithuania.                                                                   
                                                                                
     Article. 3. The Status of the Fund                                         
      1.  The Fund shall be a legal person having a seal with its               
name  and a settlement account. The Fund shall be liable for  its               
obligations to the extent of all its property.                                  
      2.  The Fund shall be free to choose its name according  to               
the  sphere of its activities. A non-profit organisation  of  the               
type shall be referred to in the statutes as "the Fund." The name               
and   symbols  of  the  Fund  must  be  in  compliance  with  the               
requirements  of  the Regulations of Firm Names approved  by  the               
Government.                                                                     
      3.  The  Fund shall enjoy freedom of activities, initiative               
and  decisions  granted by the Constitution of  the  Republic  of               
Lithuania,  this Law and other laws of the Republic of  Lithuania               
and in its activities  shall abide by the statutes registered  in               
accordance with the procedure established by this Law.                          
                                                                                
     Article 4. Goals and Activities                                            
      1.  In  its  activities the Fund may pursue  the  following               
goals:                                                                          
     1) giving financial aid and rendering free assistance to the               
disabled,  sick  persons, lonely individuals incapable  of  work,               
orphans or children who have lost parental care or who live in  a               
single-parent family, to families with many children and families               
with  little  income, to unemployed  persons whose income  cannot               
guarantee the minimum living standard;                                          
      2)  giving financial aid to persons who are victims of war,               
natural   or   ecological  disasters,  epidemics  of   infectious               
diseases,  helping  liquidate  the  consequences  of  the  above-               
mentioned disasters and epidemics;                                              
      3)  helping  persons  who  have become  jobless  find   new               
employment or train for a new profession;                                       
     4) supporting programmes of development of science, culture,               
education,  art, religion, sports, health care, social  care  and               
assistance;                                                                     
      5)  promoting  programmes of environmental  protection  and               
landscaping works;                                                              
      6) supporting programmes of history, architecture, cultural               
properties protection, preservation and restoration works;                      
      7)  promoting other activities of social utility and social               
programmes announced by the Government;                                         
      8) backing village, township, town and regional development               
projects and programmes;                                                        
      9)  supporting  other  projects and  programmes  which  are               
significant for the community.                                                  
      2.  The  goals  of the Fund's activities,  the  spheres  of               
charity and sponsorship must be specified in the statutes of  the               
Fund.                                                                           
     3. The Fund shall dispense  charity or sponsor in accordance               
with  the  procedure  established  by  the  Law  on  Charity  and               
Sponsorship.                                                                    
      4.  The Fund may not dispense charity or sponsor or in  any               
other  way  distribute income to the Fund's founders, members  of               
management  bodies or employees except in cases  where  they  are               
objects of financial aid as laid down in the Fund's statutes.                   
                                                                                
     Article 5. The Founders                                                    
      1.  The  founders  of the Fund shall be natural  and  legal               
persons who obligate themselves, prior to the registration of the               
Fund,  to  allot monetary or property contributions  and  provide               
services  to  the Fund. The Fund may be founded  by  natural  and               
legal  persons  of  the Republic of Lithuania and  other  foreign               
states,   international  organisations.  Political  parties   and               
political  organisations as well as state  power  and  government               
institutions  which  control financial accounting  activities  of               
Funds may not be founders of the Fund.                                          
      2.  The founders of the Fund shall have the following  non-               
property rights:                                                                
     1) to participate in the founders' meetings with the casting               
vote;                                                                           
     2) to be furnished information on the Fund's activities;                   
      3)  to  appeal  to  court against the  resolutions  of  the               
founders'  meeting  or  the  Board  or  the  decisions   of   the               
Administration.                                                                 
      3.  The  number  of  founders of  the  Fund  shall  not  be               
restricted. The founders who fail to fulfil their obligations may               
be  expelled, whereas the Fund's sponsors who obligate themselves               
to allot monies to the Fund may be granted the rights of founders               
established  by this Law. Only the founders' meeting  shall  have               
the power to expel a founder and to grant a sponsor the rights of               
the founder. The procedure for expelling the founder and granting               
sponsors  the  rights of the founder must be  laid  down  in  the               
statutes.                                                                       
      4.  The founders shall conclude the founding agreement.  In               
the  event  that the Fund is being established by one person,  he               
shall  draw  up  the  deed of founding instead  of  the  founding               
agreement and the requirements of the latter shall apply  to  the               
deed.  Reference  to other documents shall be  permitted  in  the               
founding agreement. Said documents must be appended.                            
      5.  The  following must be stated in the founding agreement               
(deed):                                                                         
      1)  the  founders (full names, names of legal persons)  and               
their addresses;                                                                
     2) the name of the Fund;                                                   
     3) the goals of the Fund;                                                  
     4) the founders' obligations;                                              
     5) compensation of founding expenses;                                      
     6) duration of the Fund's activities.                                      
     6. The founding agreement shall be signed by all founders or               
persons  authorised by them. In case at least one  founder  is  a               
natural  person, the agreement must by certified by a notary.  If               
all  the  founders are legal persons or enterprises  without  the               
rights  of legal person, the signatures of their manager  or  the               
authorised  person shall be certified with a seal. The  procedure               
established for natural persons shall apply to the legal  persons               
of a foreign state.                                                             
                                                                                
     Article 6 The Statutes                                                     
      1.  The  statutes  are a legal document which  governs  the               
Funds' activities.                                                              
     2. The following must be stated in the statutes:                           
     1) the name of the Fund;                                                   
     2) the Fund's registered office (address);                                 
      3) the Fund's founders (full names, names of legal persons)               
and their addresses;                                                            
     4) the founders' rights and duties;                                        
      5)  the  procedure of the founders' withdrawal  (expulsion)               
from  the  Fund  and of granting the sponsors the rights  of  the               
founder;                                                                        
      6)  the  goals  and duration of the Fund's activities,  the               
spheres of charity and sponsorship;                                             
     7) sources of the Fund's income, the procedure for using the               
Fund's revenue and property;                                                    
      8)  the  procedure for forming the managing bodies and  for               
removing said bodies, their competence;                                         
     9) control of financial activities;                                        
      10)  the  procedure  for  amending  and  supplementing  the               
statutes;                                                                       
       11)   the   procedure  for  establishing  and  liquidating               
affiliates, their powers;                                                       
     12) the procedure for reorganising and liquidating the Fund.               
      3. The statutes may also contain other provisions which are               
in compliance with the laws of the Republic of Lithuania.                       
      4.  If  the activities provided for by the statutes of  the               
Fund  are  regulated by other laws of the Republic of  Lithuania,               
said  laws  must  be complied with while drawing  up  the  Fund's               
statutes.                                                                       
      5. The Fund's statutes must be adopted by the resolution of               
the founders' meeting.                                                          
                                                                                
     Article 7. Registration                                                    
      Funds  as  well  as affiliates of foreign  state  Funds  in               
Lithuania shall be registered, re-registered and removed from the               
register in accordance with the procedure established by the laws               
of the Republic of Lithuania.                                                   
                                                                                
     Article 8. Affiliates                                                      
      1.  Funds  shall have the right to set up affiliates.  They               
shall be set up in accordance with the procedure specified in the               
Fund's statutes.                                                                
      2.  An  affiliate  shall be the Fund's subdivision  with  a               
separate  registered office. An affiliate is not a  legal  person               
and  shall use the name of the Fund as a legal person. Affiliates               
shall operate in compliance with the powers granted by the Fund's               
statutes   which  must  also  be  specified  in  the  affiliates'               
statutes.                                                                       
      3.  The property of the affiliate shall be recorded in  the               
Fund's financial records as well as in separate financial records               
of the affiliate.                                                               
     4. Affiliates shall be registered, re-registered and removed               
from the register in accordance with the procedure established by               
law.                                                                            
      5.  The  affiliates  of  foreign  state  Funds  (charitable               
organisations)  which  are in compliance with  the  laws  of  the               
Republic of Lithuania shall be registered under the laws  of  the               
Republic of Lithuania.                                                          
                                                                                
     Article 9. Rights and Duties                                               
      1.  In order to conduct the activities provided for in  the               
statutes, the Fund may:                                                         
      1)  have  one  settlement account and one foreign  currency               
account  only  with  the  banks registered  in  the  Republic  of               
Lithuania;                                                                      
      2)  possess legally acquired property, manage and  use  the               
property and dispose thereof;                                                   
     3) assume obligations and conclude contracts with partners;                
      4)   pay  for  goods  and services in accordance  with  the               
procedure established by law;                                                   
     5) form non-profit organisations and withdraw from them;                   
      6)  set  up  an enterprise belonging to the Fund  with  the               
monies  provided for in Article 10, paragraph 6, sub-paragraph  2               
of  this  Law.  Such enterprises shall be established  and  shall               
operate  in  accordance with the law on the  enterprises  of  the               
appropriate type.                                                               
      2. The Fund shall be prohibited from engaging in commercial               
activities  or  from being a general partner of  partnerships  or               
from borrowing   funds.                                                         
      3.  The  Fund  shall  be prohibited from  participating  in               
political  activities, sponsoring political parties and political               
organisations.                                                                  
      4. The Fund shall have the right to refuse to accept monies               
or  property  from  potential sponsors  if  by  taking  advantage               
thereof  sponsors  or their group may exert  influence  over  the               
Fund's activities for their own or other persons' benefit.                      
      5.  Funds  must  keep  records of charity  and  sponsorship               
specifying  the donors of charity and sponsors  as  well  as  the               
donees  and   the amount and purpose of charity and  sponsorship.               
The  Funds shall conduct accounting, present financial accounting               
data  to  state  institutions  and  pay  taxes;  their  financial               
accounting activities shall be controlled.                                      
     6. The Fund's accounting year shall be calendar year.                      
                                                                                
     Article 10. The Property                                                   
      1. The Fund may own the property by the right of ownership,               
legitimately   acquired  for  the  carrying  out  of    statutory               
activities.   The   property  of  the  Fund  shall   be   treated               
separately  from the property of the founders.                                  
     2.  Income  sources of the Fund may be as follows:                         
      1)  contributions  of the founders and otherwise  allocated               
resources;                                                                      
     2) funds and property donated by sponsors;                                 
     3) legacies left to the Fund;                                              
      4)  interest paid by credit institutions on the funds  kept               
in them;                                                                        
      5)  profit of the enterprises belonging to the Fund and the               
enterprises of which the Fund is a co-owner;                                    
      6)  funds  and property allocated for special projects  and               
programmes from analogous funds, programmes and projects.                       
      3. Contributions, gifts and legacy of founders and sponsors               
may  include  cash,  property  (buildings,  equipment,  means  of               
transportation, etc.) and services.                                             
      4.  The   funds  and  property  received  for  charity  and               
sponsoring  may  be  used  by  the Fund  only  for  the  purposes               
specified in the Statutes.                                                      
     5. The sponsor of the Fund may specify   the spheres wherein               
the  funds (property) allocated by him may be used, but only  for               
the  activities provided for in the Statutes. The Fund  must,  at               
the  request  of  the sponsor, furnish information  necessary  in               
order   to   control  how    the  Fund  fulfils   the  conditions               
established by the sponsor.                                                     
      6.  The  Fund shall have the right to apply part of charity               
and sponsorship  funds for the following purposes:                              
      1)  administration expenses and development of  the  Fund's               
activities - up to 20 percent of its annual income;                             
      2)  for  the  establishment and development of  enterprises               
belonging  to  the Fund - up to 50 percent of its annual  income,               
including the expenses specified in sub-par. 1 of this par.                     
      7.  The resources of the Fund shall be accumulated and kept               
in the banking institutions.                                                    
     8. The property of the Fund may not be mortgaged, it may not               
be  used  as  a  collateral to secure debt obligations  of  other               
persons.                                                                        
      9.  The receipts of the Fund from the activities which  are               
not provided by  the Statutes, as well as receipts generated   or               
applied  in  violation of this Law, shall be transferred  to  the               
State Budget in the manner prescribed by laws.                                  
                                                                                
     Article 11. Managing  Bodies                                               
      The  managing bodies of the Fund shall include the  meeting               
(conference)  of  the founders, the board and the administration.               
By  the  resolution of the founders' meeting a supervisory  board               
may be formed.                                                                  
                                                                                
     Article 12. Founders' Meeting                                              
      1.  The founders' meeting (conference) shall be the supreme               
managing body of the Fund. If the Fund has been founded  by   one               
person, his written decisions shall be of  equal  power  with the               
resolutions of the founders' meeting.                                           
     2. The founders' meeting shall have the power to:                          
     1) adopt, amend and supplement the statutes;                               
      2)  expel  founders, confer the rights of founders  on  the               
sponsors;                                                                       
      3)  elect (appoint)  members of the Board and the  auditor,               
and remove them from office;                                                    
      4)  fix  remuneration for the members of the Board and  the               
auditor and for the head of the Administration if he is a  member               
of the Board;                                                                   
     5) confirm work statement of the Fund;                                     
     6) reorganise and liquidate the Fund;                                      
     7) set up enterprises belonging to the Fund.                               
      3. The procedure for convening a founders' meeting shall be               
prescribed by the statutes. The resolutions of the meeting  shall               
be  adopted in accordance with the procedure established  in  the               
statutes of the Fund. When adopting resolutions, each participant               
at the meeting must  have one vote.                                             
     4. The founders' meeting may delegate part of its functions,               
with the exception of functions specified in sub-par. 1, 2, and 6               
of  par.  2  hereof,  to  a  special  supervisory   body   -  the               
Supervisory Board  formed from the founders  and  public figures.               
The  procedure for the formation  of the Supervisory  Board,  the               
delegation of functions, the relationship between the Supervisory               
Board  and  founders' meeting, as well as the procedure  for  the               
adoption of decisions shall be established by the Statutes of the               
Fund.                                                                           
                                                                                
     Article 13. The Board                                                      
      1. The Board is a collective body, run by its chairman. The               
number  of  the  members of the Board (at least three)  shall  be               
prescribed by its statutes.                                                     
     2. Members of the Board and its chairman shall be elected by               
the  founders' meeting for the term established by the  Statutes.               
Members and its  chairman may be removed from their posts or  may               
be elected for another term.                                                    
      3.  A member of the Board (chairman) may resign from office               
prior  to  the  expiry of the term, upon giving written  14-  day               
notice to the  Board.                                                           
      4. The majority of the Board members may not consist of the               
persons  related by blood or by marriage. At least  half  of  the               
Board members must be residents of the Republic of Lithuania. The               
majority  of  the Board members may not be the employees  of  the               
Fund's  Administration. The Statutes may provide for   additional               
requirements with respect to   the members of the Board.                        
     5. The functions of the Board shall be as follows:                         
      1)  to  establish the structure of the Fund,  the  official               
positions  of  the Administration employees, their salaries,  and               
procedure for taking on a job;                                                  
      2)  to  appoint  and dismiss from office the  head  of  the               
Administration and chief financier ( book-keeper) ;                             
      3)  to  work out the strategy and programme of  the  Fund's               
activities;                                                                     
     4) to allocate  funds for charity and sponsorship;                         
     5) to confirm  the valuation of property contributions;                    
      6)  to  analyse  work statements of the  Fund,  income  and               
expenditure estimates, the findings of the audits, stock  -taking               
and other inventory records;                                                    
     7) to present work statements to the founders' meeting.                    
      7.  The  powers  of the Board shall be established  by  the               
Statutes  of  the  Fund. The meeting shall  be  valid  if  it  is               
attended  by  at least 2/3 of all the members of the  Board.  The               
decisions shall be adopted by a simple majority vote. Members  of               
the  Board shall have equal voting rights. In case of a tie,  the               
chairman's  vote  shall  be casting. The  procedure  for  calling               
meetings shall be established by the statutes.                                  
      8.  The  chairman and members of the Board must  compensate               
jointly   for   losses incurred by the  Fund  by  reason  of  the               
decisions  of the Board, adopted in violation of the Statutes  of               
the  Fund,  this  and  other laws of the Republic  of  Lithuania.               
Persons  who  voted  against, abstained or  did  not  attend  the               
meeting at which such decision was adopted shall be  exempt  from               
the  obligation to compensate for the losses. Disputes concerning               
the compensation for losses shall be settled in court.                          
                                                                                
     Article 14. The Administration                                             
     1. The activities of the Fund shall be organised and carried               
out by the Administration.                                                      
      2. In its work, the Administration shall be governed by the               
laws  of  the  Republic of Lithuania and other  legal  acts,  the               
Statutes  of  the Fund, office regulations and decisions  of  the               
Board.                                                                          
      3.  The Fund must  have the head of the Administration  and               
chief  financier (book-keeper).  One and the same person may  not               
hold these posts concurrently.                                                  
      4.  The  Board of the Fund shall appoint the  head  of  the               
Administration  and  chief  financier  (book-keeper),  fix  their               
official  salaries  and conclude with them employment  contracts.               
The  salary  of the Administration head, who is a member  of  the               
Board  of the Fund shall be fixed by the founders' meeting. Other               
employees shall be taken on a job  and employment contracts shall               
be concluded with them by the head of the Administration.                       
      5.  The  Board  of  the Fund may terminate  the  employment               
contract  with the head of the Administration in accordance  with               
the  procedure established by the Law on Employment Contract  and               
prior to the termination of the contract - restrict his powers.                 
      6.  The head of the Administration shall have the right  to               
enter  into  transactions of the Fund  in  accordance  with   the               
Fund's statutes, decisions of the Board,  and office regulations.               
The  Statutes  of  the Fund may establish spheres  of  activities               
wherein  other authorised persons may act independently or  enter               
into  transactions  of the Fund. The head of  the  Administration               
shall  represent  the Fund in court, state power  and  government               
institutions, as well as in dealing with other persons.                         
      7.  The  head of the Administration and its employees  must               
indemnify losses caused to the Fund through their fault according               
to the procedure established by laws.                                           
                                                                                
     Article 15. Control of Financial Activities                                
       1.  The  Fund  must  perform   inspections   of  financial               
activities  at  the  intervals prescribed by  the  statutes.  The               
inspections  shall be performed by the  examiner or the  auditor,               
who  will  be  elected  by the founders'  meeting  for  the  term               
established by the statutes. A natural or legal person,  with the               
exception of a  founder, a member of the Board or an employee  of               
the Administration may be an examiner  or auditor.                              
     2. The examiner must:                                                      
      1) inspect annual accounts of the Fund and other accounting               
documents;                                                                      
      2)  at  the  instructions of the founders  and  the  Board,               
perform  the Fund's financial accounting inspections;                           
     3)   notify  the next scheduled founders' meeting or meeting               
of the Board of the violations disclosed during the inspections.                
     3. The Administration of the Fund and the Board must present               
to the examiner (auditor) the accounts requested by him.                        
       4.  The  Fund  may  pay  to  the  examiner   (auditor)   a               
remuneration. The amount of the salary or payment  conditions  of               
a remuneration shall be determined by the founders' meeting.                    
      5.  The  examiner   shall  be liable  under  the  laws  for               
inadequate  control of the Fund's activities and  for  concealing               
deficiencies.                                                                   
      6.  The  State  Control institution shall control,  in  the               
manner  prescribed  by laws, how the  funds  allocated  from  the               
state  and  municipal  budgets are being  used  for  charity  and               
sponsoring.                                                                     
                                                                                
     Article 16. Reorganisation                                                 
      1.  The Fund may not be reorganised into the enterprise  or               
organisation of another type.                                                   
      2.  The  Fund may be reorganised by the resolution  of  the               
founders'  meeting. The Fund may be reorganised in the  following               
ways:                                                                           
     1) by joining  other Funds;                                                
     2) by dividing the Fund into several separate Funds.                       
      3. The Funds that are in operation after the reorganisation               
shall  take  over the rights and liabilities  of the  reorganised               
Fund.                                                                           
      4. When reorganising the Fund, its property must be valued.               
The  auditor  or  examiner must present  in  writing  the  report               
concerning the  property prior to the founders' meeting at  which               
the reorganisation of the Fund shall be considered.                             
      5.  Information concerning the reorganisation of  the  Fund               
must be published on two separate occasions in "Valstyb‰s _inios"               
(Official Gazette), with an interval between the two publications               
of at least 30 days.                                                            
      6.  The reorganised Funds shall be registered in the manner               
prescribed by laws.                                                             
                                                                                
     Article 17. Liquidation                                                    
     1. The Fund may be liquidated on the following grounds:                    
      1)  the  time  of the Fund's duration as specified  in  the               
Statutes has expired;                                                           
     2) the resolution of the founders' meeting;                                
      3)  the  court's  decision to liquidate the  Fund  for  the               
violations of law established by the laws.                                      
      2.  The institution that has decided to liquidate the  Fund               
shall  appoint a liquidator and establish his powers.  After  the               
liquidator is appointed, the Fund shall acquire the status of the               
Fund  in   liquidation: its managing bodies shall be divested  of               
the  powers  to  manage  the Fund and their  functions  shall  be               
performed by the liquidator.                                                    
     3. Upon liquidation of the Fund, the liquidator must draw up               
the  act of liquidation, remove the Fund  from the register,  and               
return registration certificate to the Registrar who  issued it.                
      4. When liquidating the Fund its property and proceeds from               
the  sale  of property must be conveyed to another Fund or  Funds               
that  pursue similar objectives, declared in the Statutes of  the               
Fund  and  if such Funds do not exist - to other Funds. The  Fund               
(Funds) - the successor (successors) shall be determined  by  the               
liquidator.                                                                     
                                                                                
     Article 18. Final Provisions                                               
     All charitable organisations and charitable Funds registered               
up  till now must revise their   statutes according to this  Law,               
and   register them with the Registrar within one year  from  the               
coming into effect of this Law.                                                 
      I  promulgate this Law passed by the Seimas of the Republic               
of Lithuania.                                                                   
                                                                                
Algirdas Brazauskas                                                             
President of the Republic                                                       
Vilnius                                                                         
14 March 1996                                                                   
No. I-1232